The European Union is optimistic that EU countries will be rebound soon since the results of the first quarter economic activities had surpassed expectations. Moreover, the second quarter, which started with enhanced health situation has allowed the economies of member countries to get back on track; making the near-end-of-year prospect appear much better than what was originally forecasted.
Eurostat’s Preliminary Flash Estimate had earlier suggested that there would be a great decline of GDP during the 2021 first quarter.On the contrary the decline was milder, due to the reduced numbers of new infections and hospitalisations, the progress in vaccination, and effective implementation of containment strategy,
That being the case, EU Member States agreed to reopen their economies in order to improve the welfare of service sector businesses.
GDP Growth in 2nd Quarter Expected to Continue in 2022
Survey results and data tracking mobility reports show positive indications that a bounce back in consumption has already begun. The EU believes that the trend will continue and will strengthen in the following months.
In total, the Gross Domestic Product (GDP) forecasts for this year is expected to increase by 4.8% and by 4.5% next year, in both the Euro area and in EU countries.
In the Euro area, inflation is expected to average 1.9% this year, and by 1.4% in 2022. Despite the high uncertainty and risks surrounding the growth interpretation, the overall outlook is that everything looks balanced.
However, if the supply constraints persist the pressure will result in price increases that will likely be passed on to consumers. In that would be the case. inflation rate might be higher than what the EU foresees.
The reasons for wanting financial freedom can vary from person to person. Nevertheless, there are always similar motifs. Often this is the exit from active working life.
Many employees cannot and do not want to work in their profession until the retirement age of 67. The possibility to quit working life at any time due to financial freedom, even at the age of 40 or 50, can mean security in this context.
Financially free people no longer have to “endure” possible stress or physical strain from employment. As a result, private individuals can prevent the many health hazards caused by work stress. Privateers use the time saved for a healthier life, more sport and more time with their family, for example.
Those who have achieved financial freedom can turn to goals that promise little or no income. Volunteering is one of them, for example. Conversely, financial support can also be a step towards self-employment. This in turn can lead to a new stream of income.
Possible reasons for wanting financial freedom
- Early retirement
- Less stress
- More family
- Live healthier
- Professional reorientation
Retirement investment: Is financial freedom possible for low and normal wage earners?
Various authors of financial literature assume that financial freedom is possible for everyone. In reality, people who already have a high level of education and wealth have a higher chance of achieving financial freedom. Low and normal wage earners often have to spend a large proportion of their income on their way of life. Therefore, they can build up comparatively less wealth.
Despite this difficult starting position, people with low incomes can also achieve financial freedom. In addition to a high-yield investment, you can adjust two factors for this. On the one hand, they can reduce their expenses or increase their income. The cost reduction has its limits. In contrast, there are theoretically unlimited possible increases in wealth.
Retirement: Get financially free by investing
The basis for the concept of financial freedom can therefore be the investment of funds in the capital market or real estate market. You can also open an offshore account and learn how this can help you secured financially. This form of investing delivers a long-term return that is significantly higher than that of fixed-income investments, such as overnight or fixed-term deposits. Aspiring investors should first look at the basics of investing.
What Are Futures Contracts?
The futures are financial contracts in which the buyer and the seller of a particular commodity (gold, wheat, salt, sugar, coffee, etc.) agree after a set time to exchange a certain amount of that commodity for a fixed price. A sort of insurance for the future is stipulated between the parties. Futures are useful because, for obvious reasons, it is not possible to predict the prices of wheat or sugar in the future, (months or years in advance). The use of futures contracts helps producers (like farmers) avoid a price too low or too high in the future. In other words, a contract is made in which it is stipulated that the goods will be exchanged at a price agreed in advance. See A Plus assets for more information on the futures market (해외선물).
Futures and Commodity Prices
From a theoretical point of view, everything looked well. But in reality, in a world where as many as one billion people suffer from hunger, the excessive spread of futures leads to unacceptable – if not scandalous – paradoxes. In practice, it happens that there is no longer any relationship between the prices of securities traded on the stock exchange and the raw material physically cultivated in the fields. Prices are determined by the dynamics created in the “bet”, rather than in the real market. And the real prices follow what has been betted on – practically the price that is artificially formed on the international commodity exchanges (first of all that of Chicago), is transmitted locally. Thus, food prices do not depend so much on how the last harvest went, but also and above all on what happens on the stock exchange. If the price of wheat goes up in Chicago, it will go up all over the world, even if fundamentals haven’t changed and harvests have been good. A clear and recent example is the paradox of the price of milk in Europe in 2011, which doubled within a few weeks, despite the fact that production has always remained constant.
Specific Policies Needed To Limit Number Of Futures Contracts
In the absence of rules that force the delivery or limitation of the number of futures that can be issued or held (with the so-called “position limits”), the dissemination of these instruments is theoretically boundless. And so financial speculations have terrible repercussions on farmers all over the world and cause an acceleration of the phenomenon of instability on world agricultural markets. Which for Westerners means having a lighter wallet, but for many people, it makes the difference between being able to feed on a daily basis or not.
Speculation is part of the instability of the market; to face it, more transparency and more information would be needed. Europe is making progress, but it should be accelerated.